New Jersey regulators have approved a request from Atlantic Shores, a joint venture between Shell and EDF, to exit a 1.5 gigawatt (GW) offshore wind contract awarded in 2021, citing financial challenges and permitting delays.
The New Jersey Board of Public Utilities (BPU) voted unanimously this week to cancel the offshore renewable energy certificate (OREC) associated with the project, which was planned for development off the state’s coast.
Atlantic Shores submitted a formal termination request in June, stating that the project was no longer financially viable. The developers cited ongoing uncertainty and delays at the federal level, along with broader cost pressures affecting the offshore wind sector.
“It is very hard to lose 1500MW of electricity at a time when we know we need not just clean electricity, but more electricity,” BPU President Christine Guhl-Sadovy said during the vote.
The decision comes amid a challenging environment for offshore wind projects in the U.S., with several developers across the Northeast citing rising construction and financing costs, supply chain disruptions, and permitting hurdles.
Atlantic Shores was originally selected in 2021 as part of New Jersey’s efforts to reach 11GW of offshore wind capacity by 2040. The cancellation marks a setback for the state’s clean energy goals, though officials have said they remain committed to expanding offshore wind capacity through future solicitations.
